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Firm Characteristics and Compliance with International Financial Reporting Standards (IFRS) by Listed Financial Services Companies in Nigeria

Author

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  • Ioraver N. Tsegba
  • Joy Semberfan
  • Gabriel M. Tyokoso

Abstract

This study investigated the level of compliance with International Financial Reporting Standards (IFRS) by listed financial services companies in Nigeria, and the effect firm characteristics have on the level of compliance. The study also examined whether compliance with IFRS significantly differs between listed Deposit Money Banks (DMB) and Insurance Companies (INC) in Nigeria. Secondary data used for the study were extracted from the annual report and accounts of the sampled firms and analyzed using the multiple regression technique and Wilcoxon Rank Sum Test for two independent samples. The study found that (i) the level of compliance with IFRS by the sampled firms is high (about 85.9%); (ii) profitability is positive and significantly associated with IFRS at 10% level; (iii) firm size and auditor type are positive but insignificantly associated with IFRS compliance; and (iv) leverage and internationality are negative and insignificantly associated with IFRS compliance. Furthermore, the study found that compliance with IFRS by DMB is higher than INC but the difference is not statistically significant. The major conclusion reached in this study was that compliance with IFRS by listed financial services companies in Nigeria is not driven by firm attributes. The study recommended that adequate steps be taken by regulatory authorities such as the Financial Reporting Council (FRC) of Nigeria to ensure full compliance with the mandatory disclosure requirements of IFRS by listed firms in Nigeria.

Suggested Citation

  • Ioraver N. Tsegba & Joy Semberfan & Gabriel M. Tyokoso, 2017. "Firm Characteristics and Compliance with International Financial Reporting Standards (IFRS) by Listed Financial Services Companies in Nigeria," Applied Finance and Accounting, Redfame publishing, vol. 3(1), pages 83-93, February.
    • Handle: RePEc:rfa:afajnl:v:3:y:2017:i:1:p:83-93
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    References listed on IDEAS

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    Cited by:

    1. Amal Yamani & Khaled Hussainey, 2021. "Compliance with IFRS 7 by financial institutions: evidence from GCC," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(1), pages 42-57, March.

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    More about this item

    Keywords

    international financial reporting standards; corporate compliance; financial services companies; deposit money banks; insurance companies; Nigeria;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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